Enjoying the Journey
Were he not a car dealer, Rob Gregory has what it takes to be a motivational speaker glib delivery, expressive body language, compelling content. But he says it's hard to imagine himself as anything but a dealer. He's become more than that. He's a dealer with a vision. I was the kid in the neighborhood who fixed old bikes and sold them, says the native of Grand Forks, ND, where his father was a newspaper
Were he not a car dealer, Rob Gregory has what it takes to be a motivational speaker — glib delivery, expressive body language, compelling content.
But he says it's hard to imagine himself as anything but a dealer. He's become more than that. He's a dealer with a vision.
“I was the kid in the neighborhood who fixed old bikes and sold them,” says the native of Grand Forks, ND, where his father was a newspaper printer and his mother a schoolteacher. “People back then said, ‘Rob's going to sell cars.’”
He started selling those in 1988 at Rydell Chevrolet, Wes Rydell's flagship store in Grand Forks. Working for Rydell changed Gregory's life.
“He's one of the most authentic people I've ever met,” Gregory says of his mentor and backer.
Rydell, 61, an iconoclast of automotive retailing, runs a 20-store network in North Dakota, Montana and Minnesota.
It's a long way, in many ways, from the Great Plains to Southern California. But in 1999 General Motors Corp., impressed with Rydell, asked him to resuscitate five dealerships in the San Fernando Valley after GM market share there dropped to 13%.
Rydell's style is to scout for industry talent, instill them with his core values and ultimately set them up in their own dealerships. He's done that for many prospects, Gregory included. It's like a privately run dealer candidate-training program.
“What makes him unique is that he never gives with a hook,” says Gregory. “People still don't believe he doesn't retain ownership in any of those stores. He's ecstatic being helpful to others. He isn't the Red Cross, but he could be.”
Rising up the Rydell ranks, Gregory became sales manager of a Saturn store in St. Paul. He went on to open four Saturn stores for Rydell. During that time, Gregory became an advocate of Saturn's no-haggle pricing. In 1997, Rydell established him up as dealer principal of a small Ford-Chrysler store in Owatonna, MN.
In 1999, Gregory bought an ailing Universal Ford Toyota in Rochester, MN. He says Rydell saw Rochester as a good platform.
Gregory changed the store's name to Rochester Ford Toyota. He also changed its business environment using Rydell's tenets as well as Fish!, a new-age business approach stressing on-the-job fun, kindness and teamwork.
Says Gregory, “Wes Rydell says do the opposite of what the rest of our industry is doing and you'll be close to where you should be.”
Rydell points to five areas essential to business success: 1) Customer enthusiasm, 2) Employee satisfaction, 3) Ability to generate profits, 4) Growing market and 5) Continuous improvement.
“All are necessary, but say you can only pick one as your favorite,” says Gregory. “Most dealers pick 3, profits. Wes Rydell decided to focus on 1, customer enthusiasm.
“Any one of these isn't necessarily better or worse than another. But when you focus on customers first, it puts you on a different journey. You stop focusing on what you want, and start focusing on what the people you are serving want.
“In the end, whoever gives the customer more, wins.”
As a believer, Gregory brought that to the troubled Rochester dealership when he took it over from essentially absentee owners. He doesn't blame them for the store's woes: “If you're sent a big check from the dealership on a regular basis, you're unlikely to change things there.”
Despite under performing and scoring badly on customer satisfaction surveys, the store was able to fall back on its two solid full-line franchises in a healthy mid-size market.
“The No. 1 focus was making money,” says General Sales Manager Brian Kopek whom Gregory brought in with him.
“In this industry, you can do it lousy and still do well,” says Gregory.
Customers were worked over during negotiations. If CSI scores were low, so was employee morale. It was so bad, many workers privately recommended that friends and customers go elsewhere.
“There were days you wouldn't want to be here,” recalls Al Utesch, a 31-year employee who in October became general manager.
Kopek and Utesch are the main implementers of Gregory's vision of how a dealership should be run.
That includes a one-price approach, stemming from Gregory's Saturn days.
“Who really sets the price, the market or the dealer?” asks Gregory. “It's the market. But I've no beef with the traditional way. If a dealer wants to negotiate, fine. To me, it can quickly become high-pressure selling.”
Besides using the Rydell strategy, Gregory uses the Fish! approach, the brainchild of John Christensen of ChartHouse learning, a Minnesota business-training firm. Christensen got the idea for Fish! — now a multi-media, multi-million dollar enterprise — watching playful workers at a Seattle fish market.
“A friend showed me the Fish! tape,” says Gregory. “I thought it was a good and easy way to communicate four great principles.”
Those are: having fun on the job, making someone's day, being there and choosing your attitude.
Kopek and Utesch say Fish! helped transform the dealership.
When a dealership billboard ad, across from the store, asked, “Have You Tried Our Fish?”, it heralded a new attitude at the once beleaguered store.
Sales and customer satisfaction scores went up. Employees went out of their way to help customers. Glowing thank-you notes poured in.
The challenge is keeping it going and making adjustments along the way. Kopek and Utesch conduct regular staff meetings to communicate and cultivate common purposes among the 135 staffers.
“You can't over-communicate,” says Utesch.